Diane is the chief executive officer of a U.S.-based pharmaceutical firm. Over the years, she has been purchasing significant amounts of stock in the company. The rejection of the company's new drug, by the FDA, resulted in a huge drop in the company's stock value. Diane knew of the rejection before it was made public and sold her stock. Diane is guilty of .

Question

Quizplus · Accepted Answer

Diane is guilty of insider trading, as she used non-public information to make a profit by selling her stock before news of the drug's rejection became public. False accounting involves falsifying financial records, black marketeering involves selling illegal goods, and influence peddling involves using one's position of power to gain favors or advantages. None of these apply to the situation described.

Diane Is the Chief Executive Officer of a U